{
 "@context": "https://schema.org",
 "@type": "Claim",
 "@id": "https://wulfkaal.github.io/claims/3402701-002",
 "identifier": "kaal:claim:3402701-002",
 "text": "Fiat currency collateralization is expensive and inefficient because the entire backing value must be held liquid; anything less opens arbitrage attacks of the kind Soros used against the Bank of England.",
 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
 "citation": "Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701",
 "isBasedOn": {
  "@type": "ScholarlyArticle",
  "name": "Stable Cryptocurrencies - First Order Principles",
  "datePublished": "2019",
  "url": "https://ssrn.com/abstract=3402701",
  "sha256": "72ed2581b4cac2bd18a5b2640be959487a3cbc34c86ab5e5664924bcdb53c8e0",
  "encoding": "https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Stable%20Cryptocurrencies%20-%20First%20Order%20Principles.pdf"
 },
 "keywords": [
  "defi",
  "consensus-and-security"
 ],
 "about": [
  "fiat-collateralization",
  "arbitrage",
  "liquidity",
  "soros-attack"
 ],
 "abstract": "Fiat currency collateralization is expensive and inefficient because all of the value that is backing the cryptocurrency needs to be liquid, otherwise arbitrage opportunities, such as the Soros attack, are possible",
 "additionalProperty": [
  {
   "@type": "PropertyValue",
   "name": "claim_type",
   "value": "mechanism"
  },
  {
   "@type": "PropertyValue",
   "name": "confidence",
   "value": "argued"
  },
  {
   "@type": "PropertyValue",
   "name": "scope_conditions",
   "value": [
    "fiat-backed pegs claiming full collateralization"
   ]
  },
  {
   "@type": "PropertyValue",
   "name": "is_failure_mode",
   "value": true
  },
  {
   "@type": "PropertyValue",
   "name": "attestations",
   "value": "https://wulfkaal.github.io/colloquium/attestations/c2d8a7eff9d07a2ec45c10e73ca171dc0f6abdbb47c845f5bac839fe86575915.json"
  },
  {
   "@type": "PropertyValue",
   "name": "edges",
   "value": [
    {
     "rel": "restates",
     "to": "https://wulfkaal.github.io/claims/3396522-010",
     "to_id": "kaal:claim:3396522-010",
     "similarity": 0.899
    },
    {
     "rel": "extends",
     "to": "https://wulfkaal.github.io/claims/3396522-009",
     "to_id": "kaal:claim:3396522-009",
     "similarity": 0.466
    }
   ]
  }
 ],
 "isPartOf": {
  "@id": "https://wulfkaal.github.io/claims/index.json"
 },
 "dateModified": "2026-07-27",
 "version": "1.0",
 "sha256": "c2d8a7eff9d07a2ec45c10e73ca171dc0f6abdbb47c845f5bac839fe86575915",
 "canonicalForm": "https://wulfkaal.github.io/claims/3402701-002.md"
}